Equipment Breakdown Insurance
Equipment breakdown (boiler & machinery) covers the sudden, accidental failure of the production equipment, electrical systems, and motors your business runs on — repair or replacement plus the income lost while the line is down.
Equipment Breakdown Insurance for Manufacturers
Standard commercial property covers external perils like fire and theft — but it specifically excludes the internal failure of your own machinery. Equipment breakdown insurance (historically called boiler & machinery) fills that gap, covering sudden and accidental mechanical, electrical, and pressure-system failures of the equipment your production depends on.
What's Covered
- Mechanical breakdown: A press, motor, pump, gearbox, or compressor that suddenly fails
- Electrical failure: Short circuits, arcing, and power-surge damage to motors and controls
- Pressure systems: Boilers, air receivers, and steam equipment
- Computer & control systems: PLCs, CNC controls, and production software/hardware
- Resulting damage: Other property damaged by the breakdown — including spoiled materials
- Business income & extra expense: Lost production and the cost of rush repairs or rentals
Why It Matters on a Production Floor
A single transformer failure or a seized motor on a critical line can idle an entire operation. Equipment breakdown not only pays to repair or replace the failed unit — it covers the downtime, the spoiled batch, and the expediting costs to get back online. For automated and continuous-process manufacturers, the income protection alone justifies the coverage.
How It Works With Property
Equipment breakdown is designed to dovetail with your commercial property policy so the two don't overlap or leave gaps: property handles external perils, equipment breakdown handles internal failure. We often write them together — or as a single package — so a claim is never caught in the middle.
What's Covered
Frequently Asked Questions
Doesn't my property policy already cover broken machinery?
No. Commercial property covers external perils like fire, theft, and water, but it specifically excludes the internal mechanical and electrical breakdown of your own equipment. Equipment breakdown insurance is the policy that covers a motor that burns out, a press that fails, or a control system that fries.
Does equipment breakdown cover lost production during repairs?
Yes. The policy includes business income and extra-expense coverage, so it pays for the revenue you lose while a critical machine is down and covers expediting costs — rush parts, rentals, and overtime — to restore production faster.